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The Facebook stablecoin dream has shut down

Wednesday 2 February 2022 11:39 CET | News

The Diem project, launched by Facebook as Libra in 2019, has shut down following scrutiny from financial regulators.

The stablecoin was to be pegged to the USD. The move ends a nearly two-year-long bid to launch the stablecoin, which had faced stiff resistance from regulators around the world.

The Diem association's assets will be sold to Silvergate Bank, a crypto-focused bank in California that had partnered with the group to launch the digital currency, for USD 182 million. The acquisition includes development, deployment, and operations infrastructure and tools for running a blockchain-based payment network, the bank said in a statement.

Facebook's cryptocurrency project plans raised concerns among global finance officials and regulators. Many questioned Diem's security and reliability, with regulators arguing that the service could enable crime, including money laundering and harming user privacy. In 2021, some US lawmakers said Facebook could not be trusted to manage a cryptocurrency and urged the company to discontinue the test immediately.

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Keywords: Diem, Meta, blockchain, stablecoin, crypto
Categories: DeFi & Crypto & Web3
Companies: Facebook
Countries: World
This article is part of category

DeFi & Crypto & Web3

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